Rangatira Annual Report 2023 - Flipbook - Page 51
Ra n g a t i ra An n u a l Re p ort 2023
Rangatira Group
Notes to the Consolidated
Financial Statements (continued)
For the year ended 31 March 2023
Amortised cost
Term deposits and loans receivable are at amortised cost because they are held solely for payments of principal and interest, and
do not include features outside a normal lending arrangement. They are recorded at amortised cost less impairment. For performing
loans receivable where the credit risk is in line with the original expectations, the Group applies the 12 month expected credit
losses (ECL) model. Where the expected lifetime of an asset is less than 12 months, ECLs are measured at its expected lifetime. For
underperforming loans receivable, a significant increase in credit risk is presumed if interest and/or principal repayments are 30 days
past due. For such loans, the Group applies a lifetime expected losses approach to calculate the ECL provision.
To measure the ECL, management has obtained collateral values and assessed the probability of default. Management also consider
the history of payments, account activity, economic factors and other relevant information when determining the amount of loss
allowance.
The Group has recognised an expected credit loss of $286,000 for the year ended 31 March 2023 for its loans receivable (2022:
$286,000). This is based on the information available at that time and taking into consideration events that occurred up to the date of
authorisation of the financial statements.
The ECL measured for term deposits is trivial, therefore none has been recognised against those instruments.
2023
$000
2022
$000
46,206
-
Loans to associate companies
2,231
1,000
Loans to other parties
3,202
11,112
3,117
3,271
Interest rate swaps
171
-
Private shares (FVTPL)
110
270
Publicly listed shares (OCI)
38,787
51,737
Private shares (OCI)
55,345
91,546
149,169
158,936
Current financial assets
52,225
7,919
Non-current financial assets
96,944
151,017
Other financial assets at amortised cost
Term deposits
Financial assets at fair value through profit or loss
Publicly listed shares (FVTPL)
Fair value through other comprehensive income
Total other financial assets
51